HGI Drops $185M For Brickell Rental Building – Commercial Observer
Harbor Group International (HGI) has once again paid big bucks for a rental tower in central Miami.
The Virginia-based investor dropped $184.5 million for Miro Brickell, a 372-unit property located at 255 SW 11th Street in Brickell, HGI announced.
The Arizona-based seller, Alliance Residential Company, completed the 24-story building in 2017. Alliance purchased the 1.8-acre site for $20.2 million in 2014 and nabbed a $75 million loan from JP Morgan Chase the following year, according to property records.
The sale to HGI works out to $496,000 per unit. It was financed by New York Community Bank and sourced by Meridian Capital Group, said a spokesperson for HGI, who declined to comment on the loan’s amount.
“Miami is a priority market for HGI given its long-term multifamily fundamentals driven by corporate expansions and in-migration trends, leading to strong investment opportunities,” HGI president Richard Litton said in a statement.
Brickell, Miami’s financial district, has attracted much of the corporate migration. Earlier this year, financial heavyweight Citadel announced that it’s relocating its global headquarters to Brickell. Just this week, Sidley Austin inked a 60,000-square-foot lease at the 830 Brickell development, which has lured Microsoft, Marsh Insurance, and other billion-dollar companies as tenants.
Monthly rents at Miro range between $2,828 and $4,539, per Apartments.com. The property is about 95 percent leased, per HGI’s representative.
The Brickell acquisition will bring HGI’s Miami portfolio to seven properties, which together span 1,500 apartments.
The firm has become one of more active investors in the region. In March, it spent at least $400 million for the ParkLine Miami, an 816-unit complex in Downtown Miami, which remains Miami’s priciest multifamily trade this year in gross terms.
The following month, the investor bought a newly-built multifamily property near Sweetwater for $50 million.
A representative for Alliance Residential did not immediately respond to a request for comment.
Julia Echikson can be reached at email@example.com.